21
ANGLOGOLD ASHANTI LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2009
…continued
Prepared in accordance with US GAAP
Note O. Derivative instruments (continued)
Non-hedge derivative gain/(loss) recognized
Six months ended June 30, 2009
(unaudited)
(in US Dollars, millions)
Location of gain/(loss) in income
Realized
Forward sales type agreements – commodity
Non-hedge derivative gain/(loss)
222
Option contracts – commodity
Non-hedge derivative gain/(loss)
18
Foreign exchange contracts
Non-hedge derivative gain/(loss)
93
Foreign exchange option contracts
Non-hedge derivative gain/(loss)
3
Interest rate swaps – Gold
Non-hedge derivative gain/(loss)
2
338
Unrealized
Forward sales type agreements – commodity
Non-hedge derivative gain/(loss)
(93)
Option contracts – commodity
Non-hedge derivative gain/(loss)
11
Foreign exchange contracts
Non-hedge derivative gain/(loss)
(7)
Foreign exchange option contracts
Non-hedge derivative gain/(loss)
3
Interest rate swaps – Gold
Non-hedge derivative gain/(loss)
2
Option component of convertible bonds
Non-hedge derivative gain/(loss)
(15)
(99)
Gain on non-hedge derivatives
239
Six months ended June 30, 2009
(unaudited)
(in US Dollars, millions)
Cash flow
hedges, before
tax
Cash flow hedges removed from
equity, before tax
Hedge ineffectiveness, before tax
Gain/(loss)
recognized in
accumulated
other
comprehensive
income
(effective
portion)
Location of
(gain)/loss
reclassified from
accumulated
other
comprehensive
income into
income
(effective
portion)
Amount of
(gain)/loss
reclassified from
accumulated
other
comprehensive
income into
income
(effective
portion)
Location of (gain)/loss
recognized in income
(ineffective portion)
Amount of
(gain)/loss
recognized
in income
(ineffective
portion)
Forward sales type agreements
–
commodity
16
Product sales
92
Non-hedge derivative gain/(loss)
5
Foreign exchange contracts
2
Product sales
-
Non-hedge derivative gain/(loss)
-
18
92
5
Note P. Commitments and contingencies
Capital expenditure commitments
Capital commitments and contingent liabilities of the Company include total contracted capital
expenditure of $173 million and total authorized capital expenditure not yet contracted of
approximately $741 million as of June 30, 2009. The Company intends to finance these capital
expenditures from cash on hand, cash flow from operations, existing credit facilities and, potentially,
additional credit facilities or debt instruments.
Ground water pollution – South Africa
The Company has identified a number of groundwater pollution sites at its operations in South
Africa and has investigated a number of different technologies and methodologies that could
possibly be used to remediate the pollution plumes. Numerous scientific, technical and legal reports
have been produced and remediation of the polluted soil and groundwater is the subject of
continued research. Subject to the technology being developed as a proven remediation technique,
no reliable estimate can be made for the obligation.
Deep ground water pollution – South Africa
The Company has identified a flooding and future pollution risk posed by deep groundwater, due to
the interconnected nature of operations in the West Wits and Vaal River operations in South Africa.
The Company is involved in task teams and other structures to find long-term sustainable solutions
for this risk, together with industry partners and government. As there is too little information for the
accurate estimate of a liability, no reliable estimate can be made for the obligation.
Soil and sediment pollution – South Africa
The Company has identified offsite pollution impacts in the West Wits area, resulting from a long
period of gold and uranium mining activity by a number of mining companies as well as millennia of
weathering of natural reef outcrops in the catchment areas. Investigations are being conducted but
no reliable estimate can be made for the obligation.